Starting a new business in Singapore is a great prospect for any foreign establishments. While it is great, take note that there are rules and regulations that you might want to know when incoporating a company in Singapore.
Company Incorporation Singapore - requirements
Here are a few stipulations:
- Anyone can register a new company in Singapore, applies to both locals and foreigners
- Singapore permits 100% foreign ownership
- Paidup capital of one dollar is allowed
- Minimum of 1 director and 1 shareholder is required
- The company must have at least one local director
- The company address must be a Singapore registered address
- Company secretary is a requirement
What are the benefits
Here's one great benefit: The country allows ZERO coporate tax for the first $100,000 profits for fresh companies, up to 3 years. This is a very competitive benefit that most foreign establishments enjoy.
The corporate tax is also very enticing: 8.5% tax for up to $300,000 profits and 17% for profits above that. The coporate tax rates are very competitive, which prompts many foreign companies to start their local presence in Singapore.
Other prerequisites
One important highlight here is that a local secretary must be hired by the company and this secretary must be qualified. Most of the time the secretary is not part of the company's payroll and is usually outsourced to a professional secretarial services company.
So, the challenge here is to find and appoint a professional and qualified company secretary. Fortunately, there are a number of professional and capable company secretaries in Singapore so it shouldn't be too hard to look for one.
The wrap-up
Incoporating a company in Singapore is a good plan. The new company will not only get tax exemptions, you get a huge pool of local talents.
Company formations are very exciting. Forming a company from the ground up is a very risky thing to do, but it is a very exciting time in ones live. Knowing that you will soon be able to tell your boss to shove it gives you a feeling of joy. Though it is a process that you should understand, and you should realize that it is a process that takes time, in fact company formation could take months if you are going at it the right way. The company registration process alone takes a long time, as we all know, government take long with just about everything, no matter which country you are in.
So the trick really is to plan ahead. You will always need to be a step ahead of yourself, if you know what I mean. You need to, before you do anything, sit down with a pen and pad and write down anything you will need. If you are building a new office for your company, you will need to call contractors, which will be your first step. If you are buying an already existing office you will call upon real estate agents, in that instance that will be your first move. Or if you are just planning to rent, you will call on rental agent, and therefore in that instance, this will be your first step, so you will jot that down on the top of the list. If you are building a place, you will need to get new furniture, if you are buying a place you will have to find out if it comes with the furniture in tact or empty, and the same goes for renting. So, that will be your second step. Once you have found a place and even before you go onto the design aspect of the process you will need to think of company registration.
This is a very boring process; you will have to leave a full day open for this part, as standing in queues at your local tax office takes up time. You will then have to speak to the person behind the desk, who will not care about what you are saying, and who will hand you a stack of paper, which you will have to take home and fill in, just to come back the next day and stand in the same long waiting line once again.
Once you got all of that out of the way, the rest of the company formation will go pretty smoothly. You need to figure out what staff you need, for this you will need the help of a recruiter, you cannot do everything yourself. Which brings us to an assistant for you; you will probably want to do this interview yourself, as you will be the one working with this person day in and day out. After all of this, hopefully you have already planned and decided what your company will be doing or offering the public, not to mention the name of your new business.
Both Joseph Johnny & Mike Bern336 Mike Bern336 are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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